Bitcoin Bottomed Out, Gradual Recovery Expected – Arthur Hayes
Arthur Hayes, former CEO of BitMEX, has expressed optimism about Bitcoin's recent performance, suggesting it has reached a temporary bottom and will gradually rebound in the coming months.
In a blog post dated May 3, Hayes remarked on the recent market downturn, stating that the price movement aligned with his expectations. Bitcoin (BTC) experienced a dip to around $58,600 this week but is expected to rally above $60,000 and maintain a price range between $60,000 and $70,000 until August.
Hayes attributed the 12% decline in Bitcoin’s price this week to various factors, including the U.S. tax season, concerns about Federal Reserve decisions, the Bitcoin halving event, and a slowdown in inflows to spot Bitcoin exchange-traded funds. This correction marked the fourth similar retracement in the past year.
He anticipates that cryptocurrency markets will gradually recover from the recent sell-off, fueled by increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening (QT) taper and the U.S. Treasury’s debt issuance plans.
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According to Hayes, this gradual addition of liquidity into the market could mitigate negative price movements, leading to a bottoming out and a slow upward trend.
Hayes’s sentiments align with those of Jeff Ross, Founder and CEO of Vailshire Capital Management, who also anticipates a sideways market in the near future. Ross interprets the Federal Reserve’s shift in rhetoric as a transition to improved liquidity conditions, indicating ongoing bullish market trends.
Additionally, MatrixPort, an institutional crypto brokerage, reiterated its outlook that Bitcoin tends to trade sideways for four to five months post-halving based on historical data.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
